Are textbooks subject to value-added tax in Vietnam?

Are textbooks subject to value-added tax in Vietnam?

According to Clause 15, Article 5 of the Law on Value-Added Tax 2008 as amended by Clause 1, Article 1 of the Amended Law on Value-Added Tax 2013, there are specific provisions regarding non-taxable objects as follows:

Non-Taxable Objects

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12. Maintenance, repair, and construction financed by public contributions, humanitarian aid for cultural, artistic constructions, public works, infrastructure, and housing for social policy subjects.

13. Education, vocational training as prescribed by law.

14. Radio and television broadcasting funded by the state budget.

15. Publishing, importing, and distributing newspapers, journals, specialized bulletins, political books, textbooks, curricula, legal documents, scientific-technical books, books printed in minority languages, and propaganda posters and pictures, including those in the form of audio or video tapes, discs, electronic data; money, printing money.

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Thus, according to the above provisions, textbooks are not subject to value-added tax.

Are textbooks subject to value-added tax in Vietnam? (Image from the Internet)

How to calculate the value-added tax price in Vietnam?

According to Article 7 of the Law on Value-Added Tax 2008 as amended by Clause 2, Article 1 of the Amended Law on Value-Added Tax 2013, and the provisions for exchange rates when determining taxable prices abolished by Point c, Clause 2, Article 6 of the Law on Amendments to Tax Laws 2014, the tax base is specified as follows:

- For goods and services sold by production and business establishments, it is the selling price exclusive of value-added tax; for goods and services subject to special consumption tax, it is the selling price inclusive of special consumption tax but exclusive of value-added tax; for goods subject to environmental protection tax, it is the selling price inclusive of environmental protection tax but exclusive of value-added tax; for goods subject to both special consumption tax and environmental protection tax, it is the selling price inclusive of both these taxes but exclusive of value-added tax;

- For imported goods, the price is the imported price at the border gate plus import tax (if any), plus special consumption tax (if any), and plus environmental protection tax (if any). The imported price at the border gate is determined according to the regulations on import tax price calculation;

- For goods and services exchanged, used internally, or given as gifts, it is the value-added tax price of similar goods and services at the time these activities occur;

- For asset leasing activities, it is the rental amount exclusive of value-added tax.

- In cases where rental payments are made periodically or prepaid for the lease term, the tax base is the rental amount paid each period or prepaid for the lease term exclusive of value-added tax;

- In case of leasing machinery, equipment, or vehicles from abroad that are not produced domestically for sublease, the taxable price is deductible from the rental paid abroad.

- For goods sold by installment or deferred payment method, it is the price calculated based on the one-time selling price exclusive of value-added tax, excluding installment interest or deferred interest;

- For processing goods, it is the processing cost exclusive of value-added tax;

- For construction and installation activities, it is the value of the works, project items, or part of the work completed and handed over exclusive of value-added tax. In cases where construction and installation do not cover materials, machinery, and equipment, the tax base is the value of construction and installation excluding material and equipment costs;

- For real estate business activities, it is the selling price of real estate exclusive of value-added tax, except for the value of land use rights or land rent payable to the state budget;

- For agent, brokerage activities of buying and selling goods, and services earning a commission, it is the commission earned from these activities exclusive of value-added tax;

- For goods and services paid by vouchers indicating a payment price, which includes value-added tax, the tax base is determined by the following formula:

Price exclusive of value-added tax = Payment price/(1 + tax rate of goods, services) (%)

- The tax base for goods and services stipulated in Clause 1, Article 7 of the Law on Value-Added Tax 2008 includes all surcharges and additional fees that the business establishment is entitled to.

Where to submit the value-added tax return in Vietnam?

Based on Article 45 of the Law on Tax Administration 2019, the specific provisions regarding the place to submit the value-added tax return are as follows:

[1] Taxpayers submit tax returns at the directly managing tax agency.

[2] In the case of submitting tax returns through a one-stop mechanism, the place of submission is determined according to the provisions of that mechanism.

[3] The place of submitting tax returns for export and import goods is implemented according to the provisions of the Customs Law.

[4] The Government of Vietnam regulates the place for submitting tax returns in the following cases:

- Taxpayers have multiple production and business activities;

- Taxpayers conduct production and business in various locations; taxpayers incur tax obligations for taxes that are filed and paid per incidence;

- Taxpayers incur tax obligations for revenues from land; licensing the extraction of water and mineral resources;

- Taxpayers have tax settlement obligations with personal income tax;

- Taxpayers declare tax through electronic transactions and other necessary cases.